I think they will encourage their own blogs and pretty much ax the rest, and probably won't weight their own very heavily. Google I think understands the negative effects of blogs on "natural links" and things that have come up on webmasterworld by googleguy seem to point to blogs getting tossed, especially on "blog sites", those domains / hosts that do nothing but blogs.
I think that independant blogs, operated by outside of blog networks will still be viewed and considered, but they probably won't have as much PR as a result.
Google is being nice with link sites and TGPs right now too... interesting compared with Altavista's opinion, it seems.
Alex
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